How To Increase Credit Score

This week topic is going to circle around credit score aka beacon score aka FICO score. Those of you that know me hear me preach over and over again about how important it is to increase your credit score. The world we're in will make or break you if you have a poor score and this is coming from someone that has a score over 800...yeah, that's right and don't hate because you can be there too Most of you already know the 3 credit bureaus that keep our financial records are TransUnion, Equifax and Experian and based on the information reported, your FICO score is created. FICO scores are range between 300-850 so please find out what your score is http://www.myfico.com/ . This score is based on 5 primary factor:

* 35% is based on payment history
* 30% is based on the amount of credit you have used
* 15% is based on the length of your credit history
* 10% is based on the mix of credit
* 10% based on the new credit you've opened

There are several smart ways to improve your FICO score

1. Pay Your Bills On Time Since the largest component of your credit is the payment history, you must pay on time. Even if you can only pay the minimum payment, that's better than no payment at all because a late payment over 30 days or more can bring your score down 50 pts or more
2. Don't Max Out Your Credit Cards Most people feel that if they pay their bills on time each month and only pay the minimum that having a high balance will not effect their score....WRONG. Having a balance too high will mark you as a potential risk of financial trouble and give the impression that you may not pay your bills on time. Basically, try to keep your credit card balances under 30% of your credit line ex: if your credit line is $10,000 you should not allow your balance to go over $3000 Solution: have approx 2-3 credit cards, spread out your debt...if one card is getting out of control and reaching that 30% line, start using another card while paying down the others
3. Only Apply For Credit Cards When you Need Them Simple, just because you get a pre-approved application in the mail does mean to apply. You should have no more than 3 major credit cards Opening department store credit cards, gas cards etc can be reported as "bad" forms of credit...DON'T TAKE THE BAIT just to get 10% off those shoes. Say No and just use major credit cards Visa, Mastercard, Discover etc

Well, I hope this information help you guys because you'll be thinking about this email when you go to get that house you want and the bank offer you some outrageous interest rate because your score is not up to par. If you follow these steps, I promise your score will increase and don't forget to forward this email to friends, family and co-workers that are looking for a realtor...I'm here to educate and provide you with the best customer service. Take care and my contact information is below Thanks!!